Pottsville City Lots to be Developed

Check out this article in the Pottsville Republican & Evening Herald about a group of lots in Pottsville that will be developed for low-income housing:

http://www.republicanherald.com/articles/2008/12/09/news/local_news/pr_republican.20081209.a.pg3.pr09pottsville_s1.2147815_loc.txt

At Monday night’s Pottsville City Council meeting, officials said 13 vacant lots on North Second Street are considered “highest need” areas by the Pennsylvania Department of Housing and Urban Development, qualifying them for about $1 million in federal money.

“It’s going to make a big difference in that neighborhood,” City Administrator Thomas Palamar said at the meeting. The money — a chunk of $88.1 million allocated to Pennsylvania — is provided through the 2008 Housing and Economic Recovery Act and meant to redevelop abandoned or foreclosed properties. Money will be provided through the state’s Neighborhood Stabilization Program.

The end result, Palamar said, will be 10 homes refurbished and ready to sell. Palamar said housing and urban development used a one-to-10 ranking scale, assessing each area’s risk of mortgage defaults or home foreclosures. The higher an area scored, the more likely federal dollars could come to the rescue.

“They’re at the top of the list,” Craig Shields, executive director of Barefield Development Corp., which will assist the city in acquiring and rehabilitating the properties, said at the meeting. Palamar said each home — exact addresses were not provided, but are within Census Tract 19, officials said — is either vacant or considered blighted. City officials will have only 18 months to identify projects and begin work, Shields said, urging quick action. The city will apply for $1 million, with all paperwork due by January. The money does, however, come with a few strings.

Twenty-five percent of the homes must be reserved for homeowners earning no more than 50 percent of median household income. Pottsville’s median household income for 2007 is estimated to be $37,639, according to U.S. Census Bureau figures. Also, the remaining homes would be sold to homeowners earning no more than 120 percent of median income, according to neighborhood stabilization program information provided by Palamar.